Incentives/Financing

The Ohio Development Services Agency and JobsOhio offer a wide variety of financial programs for companies looking to start, relocate, or expand in Ohio. Below is a list of the most commonly-utilized economic development programs.

Incentives

Job Creation Tax Credit (JCTC): The Job Creation Tax Credit is a refundable tax credit to companies creating at least 25 new full-time jobs (within 3 years) in Ohio. The credit may also be available for certain high-wage industries creating 10 or more new full-time jobs within 3 years. The refundable tax credit is measured as a percentage of the state income tax withholdings for all new employees hired under the program, and is applied toward the company’s commercial activity tax liability. Should the amount of the credit exceed the company’s CAT liability for any given year, the difference is refunded. Approved projects generally range between a 25 and 55 percent credit for a period of 5 to 7 years. The business must apply for the credit before committing to the project.

Tax Abatement: Mercer County has certified 13 zones in within the county for the purpose of granting abatement on real property improvement projects. Application forms can be obtained through Mercer County Community Development or downloaded on our Resource drop down located on the front page of our website. See the enterprise zone map.

Research and Development Investment Tax Credit: The R & D Investment Tax Credit is a non-refundable Ohio commercial activity tax credit for all investment in qualified research expenses incurred in Ohio by eligible “C” corporations. Qualified research expenses are based on Section 41 definitions in the U.S. Internal Revenue Code and include expenses for both in-house and contract research expenses. The amount of the credit is based on 7 percent of the amount of all qualified investment in a specific year. The credit can be carried forward for up to seven years.

Roadwork Development (629): These grant funds are available for public roadway improvements, including engineering and design costs. This fund is available for projects primarily involving manufacturing, R&D, high technology, corporate headquarters and distribution activity.

Community Development Block Grant: Federal grant funds are available through the state to assist with public road, water, and sanitary sewer improvements specifically benefiting economic development projects. Job creation must be involved and companies must commit to hiring at least 51% of employees from low-to-moderate income populations in the county where the project is located.

Rapid Outreach Grants: These funds are for on or off site infrastructure improvements, including water, sewer, road and rail improvements. This fund is for companies primarily engaged in manufacturing, R & D, high technology, corporate headquarters, and distribution. Job creation or retention must be significant and all other sources of private and public financing must be considered first.

Ohio Enterprise Bond Fund: Provides loans for land and building acquisition, construction, expansion or renovation and equipment purchases for eligible businesses.

GrowNOW Program: GrowNOW is a partnership between the State’s eligible banks and the Ohio Treasury. The program enables small business owners to receive up to a 3% interest rate reduction on a bank loan when they link the loan to job growth or retention in the State of Ohio. GrowNOW also serves as a catalyst for Ohio’s economic development and rewards the small business that drives it.

Financing

Mercer County Revolving Loan Program
Mercer County Community Development Department
Jared C. Ebbing, Community/Economic Development Director
101 N. Main Street – Room 102
Celina, Ohio 45822
419-586-4209
419-586-2963www.mercercountyconnect.com
This program is funded from the proceeds from grants received from the U.S. Department of Housing and Urban Development and the Ohio Department of Development. Mercer County has a very active revolving loan fund which has enabled the county to create over 900 jobs since its inception. Eligible borrowers include: Corporations, Partnerships, of Sole Partnerships within Mercer County.Use of Funds: Fixed assets including land, buildings, machinery & equipment and working capital for an expansion of an existing business or a new start-up business.
Loan Amount: Up to 50% of the total project cost; maximum $25,000 per job created. Loan ceiling may be determined by availability of funds.
Terms & Interest Rates: Based on the borrowers needs. Interest rate is fixed – below market. At this time we are loaning at a 3% fixed rate.
Time Frame for Loan Approval: 4-6 weeks, depending how quickly information is received from our borrowers and the degree of the environmental review that must be prepared.
See the page of requirements needed in order to get the Revolving Loan process completed.

SBA 504 LOAN PROGRAM
Coordinated Through Anchor Financial
Robert Huff, Executive Director
Julie Jurosic, Project Manager
419-222-0130
Lima, Ohio
www.anchorsba.com
The SBA 504 Loan Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land, buildings, and equipment. Typically, a 504 project includes a loan secured with senior lien from a private-sector lender covering up to 50% of the projects costs, a loan secured with a junior lien from WCPI (backed by a 100% SBA-guaranteed debenture) covering up to 40% of the costs, and a contribution of at least 10% equity from the small business being helped.
Proceeds from 504 loans must be used for fixed asset projects, such as purchasing buildings and land; improvements, including existing buildings, grading, street improvements, utilities, parking lots or landscaping; construction of new facilities, or modernizing, renovating, or converting existing facilities; or purchasing long-term machinery and equipment. Prevailing wage is not applicable.

SBA 7(A) LOAN GUARANTY
Coordinated through Anchor Financial
Lima, Ohio
Robert Huff, Executive Director
Julie Jurosic, Project Manager
Lima, Ohio
419-222-0130www.anchorsba.com
SBA 7(a) loan proceeds may be used to establish a new business or to assist in the operation, acquisition, or expansion of an existing business. These include (non-exclusive):
1. To purchase land or buildings, to cover new construction, as well as expansion or conversion of existing facilities;
2.
To acquire equipment, machinery, furniture, fixtures, supplies, or materials;
3.
For long-term working capital, including the payment of accounts payable and/or for the purchase of inventory;
4.
To refinance existing business indebtedness, which is not already structured with reasonable terms and conditions;
5.
For short-term working capital needs, including: seasonal financing, contract performance, construction financing, export productions, and for financing against existing inventory and receivables under special conditions

REGIONAL 166 LOAN PROGRAM
Coordinated through Anchor Financial
Lima, Ohio
Robert Huff, Executive Director
Julie Jurosic, Project Manager
Lima, Ohio
419-222-0130
www.anchorsba.com
The Regional 166 Loan Program provides funding for manufacturing businesses locating or expanding in Ohio. Eligible projects include land and building acquisition, new construction, renovation or expansion of an existing building, or acquiring new or used machinery and equipment. Typically, a Regional 166 Loan project includes a loan secured with a senior lien from a private-sector lender covering up to 50% of the project costs, and a contribution of at least 10% equity from the business being helped. Proceeds from the Regional 166 Loan cannot exceed $350,000 or up to $35,000 for each new full-time job created during the first three years of the project, whichever is less. Ohio prevailing wage rate applies to all new construction, renovation, and installation of machinery and equipment.

MIDWEST ELECTRIC REVOLVING LOAN FUND
Matt Berry
060029 County Road 33A
St. Marys, Ohio
Phone: 419-394-4110 or 800-962-3830www.midwestrec.com/
Midwest Electric Administers a Rural Development Revolving Loan Fund (RLF) to promote and assist in economic development activities in rural west central Ohio. The RLF will be used to provide community development assistance to nonprofit entities, businesses, and public bodies for employment creation projects, or other projects which provide needed community facilities and services. The RLF is a low-interest financing loan program intended to fill capital financing gaps in order to encourage economic development.